U.N. peacekeeping forces in East Timor yesterday discovered a mass grave, the first confirmation of wholesale slaughter by pro-government forces that has been found since foreign troops arrived in the violence-wracked territory six weeks ago.

Australian peacekeepers said the grave was in the town of Liquicia, an area controlled by the fearsome Besi Merah Putih – or “red and white iron” – militia.

The town was believed to be the scene of some of the most violent reprisals from pro-government forces in the wake of the region’s independence vote.

Western military officials and aid workers believe pro-government militia forces hid hundreds of corpses by throwing them into the Timor Sea.

Col. Mark Kelly, spokesman for the UN Peacekeeping Force, confirmed that bodies have been washing up on shore in several areas where peacekeepers are operating.

The grisly discovery came as Indonesian President B.J. Habibie received a thumbs-down vote from parliament on his report of his 17 months in office and dropped his bid to be re-elected during a vote today.

Megawati Sukarnoputri, daughter of Indonesia’s first president, Sukarno, whose party won parliamentary elections in June, is expected to be voted in as Indonesia’s next president by the legislature.

In Jakarta, the Indonesian parliament voted to ratify East Timor’s Aug. 30 independence vote. Indonesia has occupied the province for 24 years.

Indonesian Foreign Minister Ali Alatas said he will turn over control of East Timor to the peacekeeping force by the end of the year.

President Clinton welcomed the move, calling it an “important step forward in Indonesia’s own democratic transformation.”

The Clinton administration also said “it was following, with great interest, the presidential selection process.”

“We believe that the outcome of this selection process will significantly shape the future of Indonesia’s ongoing political transition, to become the world’s third-largest democracy,” said State Department spokesman James Foley.